A $0.50 tax on lemons currently generates $200 in revenues per day. If the tax were increased to $2, the revenues generated would drop to $70. This tells you that in this range of tax rates the:
A. quantity effect outweighs the price effect.
B. quantity effect outweighs the income effect.
C. price effect outweighs the quantity effect.
D. price effect outweighs the income effect.
A. quantity effect outweighs the price effect.
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A demand curve is a graphical representation of
A) consumer tastes. B) national income. C) the demand schedule. D) relative prices.
An increase in real interest rates will lead to an increase in the quantity of loanable funds supplied
a. True b. False Indicate whether the statement is true or false
If the marginal private cost of producing one kilowatt of power in California equals five cents and the marginal social cost of each kilowatt equals nine cents, then the marginal external cost equals ________ per kilowatt
A) five cents B) nine cents C) four cents D) fourteen cents
Holding all else constant, an increase in consumption taxes, such as sales taxes or a VAT, will ________ the price of consumption goods and ________ output
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease